24 CFR § 401.421 - Rental Assistance Assessment Plan.
(a) Plan required. For any project not subject to mandatory project-based assistance under § 401.420, the PAE must develop a Rental Assistance Assessment Plan in accordance with section 515(c)(2) of MAHRA to determine whether assistance should be renewed as project-based assistance or whether some or all of the assisted units should be converted to tenant-based assistance.
(b) Matters to be assessed. The PAE must include an assessment of the impact of converting to tenant-based assistance and the impact of renewing project-based assistance on:
(1) The ability of the tenants to find adequate, available, decent, comparable, and affordable housing in the local market;
(2) The types of tenants residing in the project (such as elderly families, disabled families, large families, and cooperative homeowners);
(3) The local housing needs identified in the applicable Consolidated Plan developed under part 91 of this title;
(4) The cost of providing assistance, comparing the applicable payment standard to the rent levels permitted by §§ 401.410 and 401.411;
(5) The long-term financial stability of the project;
(6) The ability of residents to make reasonable choices about their individual living situations;
(7) The quality of the neighborhood in which the tenants would reside; and
(8) The project's ability to compete in the marketplace.
(c) Conversion may be phased in. Any conversion from project-based assistance to tenant-based assistance may occur over a period of not more than 5 years if the PAE decides the transition period is needed for the financial viability of the project.